Market review from UTEX – week 32

The week was volatile. Indices closed in a noticeable negative: S&P 500 fell by 2.1%, NASDAQ 100 – by almost 4%. “Fear Index” VIX soared by 43% and closed at the highest level since March 2023.

Apple (+0.9% for the week), Amazon (-8%), Microsoft (-4%) and Intel (-32%! The company's CEO posted a prayer on his X page) reported. Bitcoin lost $8,000 for the week and is now trading at $50,700.

All markets collapsed today, which started with Japan. The Nikkei 225 closed down 12.4%, a record decline since 1987. China's CSE 300 and European benchmarks are also trading in the red zone.

There is talk of recession in the US again. The VIX soared to 52, levels similar to those seen in June 2020. The consumer and tech sectors, especially all chip-related stocks, fell the hardest. It has been reported that Warren Buffett's Berkshire Hathaway sold half of its position in Apple and now holds $300 billion in cash. 

PMI for July will be released today. A rise in business activity at or above estimates may defuse market concerns a bit. USPTO will hold a roundtable today on AI patents.

Two-thirds of the companies in the S&P 500 have already reported. We'll keep an eye on the following earnings this week:

• Caterpillar (CAT): Aug 6 before the market opens.
• Uber (UBER): Aug 6 before the market opens.
• Duke Energy (DUK): Aug 6 before the market opens.
• Airbnb (ABNB): Aug 6 after market close.
• Disney (DIS): Aug 7 before the market opens.
• Eli Lilly (LLY): Aug 8 before market open.

Be careful in your trades – high volatility! Set tight stops.

Have a successful trade!